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Deal of the Day by Kelli B. Grant (Author Archive)
Early Adopters Miss Out on Best Gadget Deals
"Sure, there's some intangible value to being the first kid on the block to have that new toy," says Denny Arar, senior editor with PC World Magazine. "But — and I can't think of a single product where this isn't true — the first generation is bound to be buggy. Plus, you have to realize that the price is going to drop eventually."
The bottom line is that holdouts get a better deal on consumer electronics, whether it's a sleek new smartphone or a high-definition television set. "There really is no downside to waiting," says Brian Cooley, editor-at-large for electronics review site CNET. "What about your life is going to be seriously impugned without the latest gadget? Buying first is really an 'I want it,' not an 'I need it.'" In the case of the iPhone, waiting just 10 weeks after the product's launch saved consumers $200. (Early adopters were quickly offered a $100 refund as salve for their shock.)
But there is one caveat: Wait too long, and your item won't just be cheap — it'll be obsolete.
So just how long should you wait? Generally, six months after a product is released is a safe bet. Tech products have a lifecycle of up to a year before the "something-cooler-is-on-the-horizon price drop" kicks in, says Arar. Plus, most of the bugs associated with the launch of a new technology will have been fixed at that point. (Remember all of those glitches in early versions of Microsoft Windows in the past?)
If possible, wait until January to do your gadget shopping, advises Jerry Grossman, editorial director for Demystifying Digital, an electronics education site. Post-holiday sales abound and prices fall even further as the latest in hot gadgets are unveiled at major tech shows like the International Consumer Electronics Show (Jan. 7-10, 2008) and Apple's MacWorld (Jan. 15-18, 2008).
Beyond those basic rules of thumb, how long you should wait depends on the gadget you're eyeing:
Cellphones
Wait: Six monthsIt's in your wireless carrier's best interest to push that hot new phone with all the extras, says David Kelly, president of Upside Research, a technology market research firm. "Web browsing, song downloads — you'll use more minutes," he says. But don't fall for it. When it comes to mobile phones, prices fall faster than new technology is churned out. That's especially true when the cellphone with the MP3 player that you want is available from more than one provider, or is in direct competition with the current must-have music-playing handset. Consider the Motorola RAZR V3, which debuted in 2004 at $500 with a new contract, $800 without. By early 2006, the phones were free with a new contract, and $150 without.
Computers
Wait: As long as you canTechnology advances in computers are so rapid these days that even a discounted, year-old "obsolete" model is still pretty darn fantastic, says Cooley. "You're getting so much," he says. "They just keep packing it in there." At Dell, for example, you can get a 14-inch Inspiron 1501 notebook with two gigabytes of memory and an 80-gigabyte hard drive for as little as $499. The newer 1420 model, which packs one GB of memory and a 120-GB hard drive, costs significantly more at $829.
Digital Cameras
Wait: One yearDigital cameras are still a niche market, which means prices are slow to drop, says Cooley. But advancements have slowed somewhat, too. After all, your average photographer only needs so many megapixels and so much memory. Wait for the manufacturer's latest product line to be released, and you can snag an older model at a discount, without missing more than a new design and a minor feature or two.
Software
Wait: One monthMany Fortune 500 companies that buy the latest software as soon as it's released have learned a valuable lesson: Bug-filled software delays projects and decreases productivity, says Arar. "Major corporations won't buy a new version of, say, Windows Vista, until the first service package comes out," she says. The good news is that the big glitches in a software program typically reveal themselves quickly — and software makers tend to scramble to fix the problem as soon as possible. Expect the first free patches and updates to be available with a month of the software's release.
Televisions
Wait: One yearThere's just no reason to buy the latest flat-screen model as soon as it's released, says Cooley. For one, high-definition content has yet to catch up with the cutting-edge 1080p technology that's being incorporated into the latest sets. Therefore, you're paying a premium for future viewing potential. At the same time, prices are dropping dramatically, to the tune of 25% to 30% annually. "You have so many competitors, and such mainstream adoption," he says. "You can pretty much bank on that price drop continuing."
Videogame Systems
Wait: For cutting-edge videogames to be releasedLast year, consumers buying hot new videogame consoles — the Xbox 360, Nintendo Wii and PlayStation 3 — literally battled for consoles amid store shortages, prompting bidding wars on eBay that reached into the mid-four figures. At the height of demand, several PS3s were auctioned off for more than $11,000.
And for what? Even if you were one of the first people to snag a PS3 or Wii, you weren't able to exploit all of your new console's bells and whistles. That's because it takes times for the videogame makers to play catch-up and incorporate the new capabilities into their games. More than a year after the launch of the Xbox 360, for example, the first really desirable titles such as "Halo 3" and "Guitar Hero III" (also available on PS3 and the Wii) are just now hitting shelves. Not only that, but prices for the consoles tend to drop after they've been on the market for a year or so. In July, Sony lowered the price on its pricey 60 GB PS3 by $100, to $499.
Order ReprintsFolks can't buy anything at all and feel good about it, when we do buy it is with a ugly cynicism, nurtured by the industry in the name of quick profit and 'what's cool' rather than what's quality.
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